Lenders resuming foreclosures after robo-signing scandal

November 10, 2011|By Paul Owers, Sun Sentinel

The pace of foreclosures is picking up in South Florida and across the nation, according to RealtyTrac Inc.

Figures for October reveal that “foreclosure activity is coming out of the rain delay we’ve been in for the past year as lenders corrected foreclosure paperwork and processing problems,” James Saccacio, chief executive officer of RealtyTrac, said in a statement.

Saccacio added that recent court rulings and new state laws “keep changing the rules of the foreclosure game on the fly,” offering more uncertainty for the housing market.

Total filings in Broward County rose 46 percent in October from September but fell 49 percent from a year ago.

In Palm Beach County, filings increased 32 percent from September but declined 64 percent from October 2010. Nationally, foreclosures increased by 7 percent from September.

Florida had the nation’s fourth-highest foreclosure rate in October, according to RealtyTrac. The Sunshine State saw big increases in the numbers of new default notices and scheduled auctions, when a judge sets a date for the home to be repossessed.

For the 58th consecutive month, Nevada posted the nation’s highest foreclosure rate among all states, RealtyTrac said. One in every 180 Nevada homes had a foreclosure filing in October, more than three times the national average.

Last fall, lenders across the country suspended foreclosures while they investigated possible errors. Bank employees, called “robo-signers,” admitted in depositions that they signed off on thousands of cases without knowing the details.

Some real estate analysts worry that the housing market will take another hit in the coming months if lenders dump millions of foreclosed homes on the market. Other market followers expect the banks to work out deals with homeowners to keep the properties off the market.